Arkansas Legislators’ Tax Plan for 2019: Cut Income Tax to 5.9%

By Caleb Taylor Arkansas Legislative Tax Reform and Relief Task Force members voted Wednesday, December 12th to prioritize a plan that includes a cut to the top individual income tax rate from 6.9 to 5.9 percent. The Task Force approved a number of other changes at previous meetings (such as to the corporate income and […]

How fit is Arkansas’s fiscal health?

By. Caleb Taylor Where do Arkansas’s finances rank nationally? Olivia Gonzalez, a research associate for the State and Local Policy Project at the Mercatus Center at George Mason University, spoke Thursday, November 29th about Arkansas’s fiscal health and ranking in the COB Auditorium. According to the Mercatus Center’s latest state fiscal rankings, Arkansas ranks 25th […]

Which Tax Credits Should Arkansas Chop?

By Caleb Taylor Arkansas Tax Reform and Relief Legislative Task Force members discussed three tax credits for possible elimination on Monday, October 29th. The three insurance premium tax credits include the New Market Tax Credit ($16 M), the Low-Income Housing Tax Credit ($1 M) and the Home Office Tax Credit ($61 M). In total, these […]

Will legalized sports betting affect state taxes?

By David Mitchell and Doug Walker Based on their recent performance, it’s tempting to bet against the Hogs. If voters approve Issue 4 in November, you will be able to place that bet in future seasons. And while the only poll conducted on Issue 4 last month showed it trailing by a few points, don’t […]

Why Do Arkansas’s Business Taxes Now Rank 46th out of the 50 States?

By Caleb Taylor Arkansas dropped three spots from 43rd to 46th from 2018 to 2019 in the Tax Foundation’s annual Small Business Tax Climate Index. The report was released on September 26th and is authored by the Tax Foundation’s Jared Walczak, Scott Drenkard and Joseph Bishop-Henchman. According to the authors, the index is “designed to […]

Legislators Move on Proposals from ACRE’s “Road Map to Tax Reform”

By Caleb Taylor Arkansas Tax Reform & Relief Legislative Task Force members voted August 22nd to approve a report that recommends reducing the top personal income tax rate to 6.5 percent, consolidate its three rate schedules, and more. The top personal income tax rate is currently 6.9 percent. The plan would cut taxes for individuals […]

Stepping Back from the “Tax Cliffs”: Tax Reform Plans Take Shape for Arkansas

By Caleb Taylor Legislators took a big step towards finalizing their tax reform priorities for the 2019 session. Arkansas Tax Reform & Relief Legislative Task Force members voted August 7th to pursue a comprehensive tax reform proposal that would reduce the top personal income tax rate to 6.5 percent and consolidate its three rate schedules. […]

Tax Reform Task Force Takes a Good Look at 3 Ways to Cut the Income Tax

By Caleb Taylor And then there were three. Three tax reform proposals were selected by the Arkansas Tax Reform & Relief Task Force as worthy of further study by outside consultants on June 26th. Income Tax Proposals The three proposals include a plan previously announced by Gov. Asa Hutchinson and two new plans. Hutchinson’s plan […]

The Supreme Court Just Handed States a New Power to Tax. Should Arkansas Use it?

By Caleb Taylor Will a recent Supreme Court decision on state taxation of remote online sales (like through Amazon or Etsy) help or harm Arkansas’s recent tax reform efforts? ACRE Scholar and UCA Assistant Professor of Economics Jeremy Horpedahl was quoted in two statewide outlets on Thursday, June 21st about the effect of the South […]

Arkansas’s Property Tax is Low, But What Does That Mean For Income and Sales Tax Rates?

By Caleb Taylor Arkansas has the third highest combined state-local sales tax rate in the nation and the highest personal income tax rate of its surrounding states. But there is one area of taxation where Arkansans enjoy a relatively low burden: property taxes. According to the Tax Foundation, Arkansas has the third-lowest state and local […]